WHAT IS THE SCRIP DIVIDEND "IBERDROLA FLEXIBLE DIVIDEND"?

Iberdrola offers its shareholders 4 remuneration options

Full-paid capital increase: 1 share = 1 right

Iberdrola shareholders will receive one free allocation right per each share held and they will have the opportunity to choose between these four options:

SCRIP DIVIDEND

1. Receive newly issued Iberdrola shares

  • If shareholders keep the free allocation rights until the end of the trading period they will receive one free(1) Nota newly issued Iberdrola shares(2) Nota .
  • This is the default option and therefore, your bank or custodian will understand that this is your election if you do not contact them.

2. Receive cash by selling their rights to Iberdrola

  • Iberdrola will buy the free allocation rights at a guaranteed fixed price of at least 0.140 euros per right(3) Nota pursuant the purchase commitment assumed.
  • If shareholders choose this option, they must communicate it to their bank or custodian between 11 and 22 January 2018.

3. Receive cash by selling their rights on the market  

  • If shareholders choose this option they will not be entitled to the guaranteed fixed price. The sale price of the right will fluctuate in accordance with its market price.
  • Shareholders must communicate it to their bank or custodian between 11 and 25 January 2018.


CASH DIVIDEND

4. Shareholders must communicate it to their bank or custodian between 11 and 25 January 2018

  • If shareholders choose this option they will receive an amount equal to the guaranteed fixed price(4) Nota (less the corresponding withholding tax).
  • If shareholders choose this option, they must communicate it to their bank or custodian between 11 and 22 January 2018.


Shareholders do not need to choose one option, and can mix and match them to suit their needs. Only the rights corresponding to shares held as of the record date(5) Nota entitle the shareholders to elect the sale of the rights to Iberdrola at the guaranteed fixed price or the interim dividend.

Shareholders should be aware of the different tax treatment of each option.
 

(1) Nota The new shares will be delivered to shareholders free of charge and without fees. In accordance with applicable law, the custodian of your shares will be entitled to charge the management fees and expenses it deems appropriate, including fees for handling sale and purchase orders of freely assignable rights.

(2) Nota The number of rights needed to receive a new share will be calculated on the basis of the formula approved in the 2017 General Shareholders' Meeting available on this website, and it will be announced on 9 January 2018 through a notice of significant event.

(3) Nota The guaranteed fixed price will be calculated on the basis of the listed price for Iberdrola shares on 2, 3, 4, 5 and 8 January 2018, as well as the formula approved in the 2017 General Shareholders' Meeting available on this website, and it will be announced on 9 January 2018 through a notice of significant event.

(4) Nota The gross amount per share by means of the interim dividend corresponding to the fiscal year 2017 will be announced on 9 January 2018 through a notice of significant event.

(5) Nota See Calendar.